123 NOTES TO THE FINANCIAL STATEMENTS 

Note 19. Collections and Refunds of Federal Revenue

Collections of Federal Tax Revenue for the Year Ended September 30, 2023 

Federal Tax Year to Which Collections Relate 

Tax 

 Revenue Prior 

(In billions of dollars) Collections 2023 2022 2021 Years 

Individual income tax and tax withholdings 4,112.0 2,546.8 1,414.1 69.6 81.5 

Corporate income taxes 457.0 270.3 155.5 4.9 26.3 

Excise taxes 97.1 75.4 21.1 0.2 0.4 

Unemployment taxes 47.3 39.0 8.1 - 0.2 

Customs duties 85.1 78.0 7.1 - - 

Estate and gift taxes 35.4 1.3 29.9 2.1 2.1 

Railroad retirement taxes 7.2 5.4 1.6 - 0.2 

Fines, penalties, interest, and other revenue 5.5 5.4 0.1 - - 

 Subtotal 4,846.6 3,021.6 1,637.5 76.8 110.7 

Less: amounts collected for non-federal entities (0.4) 

 Total 4,846.2 

Treasury is the government’s principal revenue-collecting entity. Collections of individual income and tax withholdings 

include FICA/SECA and individual income taxes. These taxes are characterized as non-exchange revenue. 

Excise taxes, also characterized as non-exchange revenue, consist of taxes collected for various items, such as airline 

tickets, gasoline products, distilled spirits and imported liquor, tobacco, firearms, and others. 

Tax and other revenues reported reflect the effects of tax expenditures, which are special exclusions, exemptions, 

deductions, tax credits, preferential tax rates, and tax deferrals that allow individuals and businesses to reduce taxes they may 

otherwise owe. The Budget Act (P.L. 93-344) requires that a list of tax expenditures be included in the annual Budget. Tax 

expenditures may be viewed as alternatives to other policy instruments, such as spending or regulatory programs. For 

example, the government supports college attendance through both spending programs and tax expenditures. The government 

uses Pell Grants to help low- and moderate-income students afford college and allows certain funds used to meet college 

expenses to grow tax free in special college savings accounts. 

Tax expenditures include deductions and exclusions, which reduce the amount of income subject to tax. Examples are 

the deduction for mortgage interest on personal residences and the exclusion of interest on state and local bonds. Tax 

expenditures also include tax credits, which reduce tax liability dollar for dollar for the amount of credit. For example, the 

child tax credit reduces liability by $2,000 per child for taxpayers eligible to use it fully. Other credits are targeted at business 

activity, such as credits for producing electricity from renewable energy or the research and experimentation credit, which 

encourages businesses in the U.S. to increase investment in research activities. In addition, tax expenditures include some 

provisions that allow taxpayers to defer tax liability. Examples include provisions that allow immediate expensing or 

accelerated depreciation of certain capital investments, and others that allow taxpayers to defer their tax liability, such as the 

deferral of recognition of income on contributions to and income accrued within qualified retirement plans. 

The total revenues reported in the Statement of Operations and Changes in Net Position and the related information 

reported in this note, do not include explicit line items for tax expenditures, but the total revenue amounts and budget results 

reflect the effect of these expenditures. Tax expenditures are discussed in this note, the unaudited MD&A, and in the 

unaudited Other Information section of the Financial Report. 

 
 NOTES TO THE FINANCIAL STATEMENTS 124 

Federal Tax Refunds Disbursed and Other Payments for the Year Ended September 30, 2023 

Tax Year to Which Refunds Relate 

Refunds Prior 

(In billions of dollars) Disbursed 2023 2022 2021 Years 

Individual income tax and tax withholdings 611.0 100.0 302.6 160.6 47.8 

Corporate income taxes 43.9 4.4 8.7 11.0 19.8 

Other taxes, fines, and penalties 11.7 4.9 3.2 1.5 2.1 

Total 666.6 109.3 314.5 173.1 69.7 

 

Reconciliation of Tax Collections to Revenue for the Year Ended September 30, 2023, and 2022 

(In billions of dollars) 2023 2022 

Total collections of federal tax revenue 4,846.2 5,091.8 

Refunds of federal taxes and other payments (666.6) (649.1) 

Individual and other tax credits 239.8 338.3 

Federal Insurance Contributions Act - Tax (18.6) (20.7) 

Federal Reserve earnings 0.6 106.7 

Change in taxes receivable (55.0) (65.5) 

Nontax-related fines and penalties reported by entities 102.9 80.5 

Nontax-related earned revenue 16.3 43.9 

Consolidated revenue per the Statement of Operations and Changes 

in Net Position 4,465.6 4,925.9 

Consolidated revenue in the Statement of Operations and Changes in Net Position is presented on a modified cash basis, 

net of tax refunds, and includes other non-tax related revenue. Refunds of federal taxes and other payments and individual 

and other tax credits in FY 2023 and FY 2022 include the CARES Act, CAA, 2021 and ARP stimulus disbursements of $2.0 

billion and $13.1 billion, respectively, to eligible taxpayers. Individual and other tax credits amounts are included in gross 

cost in the Statements of Net Cost. Refer to Note 3—Accounts Receivable, Net for further explanation of line changes in 

taxes receivable. The FICA – tax paid by federal entities is included in the individual income and tax withholdings line in the

Collections of Federal Tax Revenue; however, it is not reported on the Statement of Operations and Changes in Net Position 

as these collections are intra-governmental revenue and eliminated in consolidation. The table above reconciles federal tax 

collections to total revenue. 
125 NOTES TO THE FINANCIAL STATEMENTS 

Collections of Federal Tax Revenue for the Year Ended September 30, 2022 

Federal Tax Year to Which Collections Relate 

Tax 

 Revenue Prior 

(In billions of dollars) Collections 2022 2021 2020 Years 

Individual income tax and tax withholdings 4,308.1 2,495.6 1,680.0 99.5 33.0 

Corporate income taxes 475.8 294.0 156.6 3.4 21.8 

Excise taxes 95.3 74.8 20.1 - 0.4 

Unemployment taxes 63.8 49.8 13.8 - 0.2 

Customs duties 104.7 97.9 6.8 - - 

Estate and gift taxes 33.4 2.3 25.9 1.8 3.4 

Railroad retirement taxes 6.1 4.4 1.3 0.4 - 

Fines, penalties, interest and other revenue 5.0 4.9 0.1 - - 

 Subtotal 5,092.2 3,023.7 1,904.6 105.1 58.8 

Less: amounts collected for non-federal entities (0.4) 

 Total 5,091.8 

Federal Tax Refunds Disbursed and Other Payments for the Year Ended September 30, 2022 

Tax Year to Which Refunds Relate 

Refunds Prior 

(In billions of dollars) Disbursed 2022 2021 2020 Years 

Individual income tax and tax withholdings 583.3 85.8 418.5 15.4 63.6 

Corporate income taxes 55.7 4.4 12.3 32.9 6.1 

Other taxes, fines, and penalties 10.1 4.0 2.0 2.4 1.7 

 Total 649.1 94.2 432.8 50.7 71.4